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what is succession planning?
...It does include the things that you mention... and it... Succession Planning is more
than just about entering and exiting a business. It is about creating financial security
for all of the relevant stakeholders. It is about encouraging the implementation of
strategic and operational business fundamentals as well as other pertinent planning
procedures, to formalise a framework within which the business can operate for the future.
It is about promoting economic stability and a long term vision for the company. It makes
people think about what they want their business to look like when they leave. Is the
business going to have a lifespan that exceeds past the point of the current business
owners retirement, or is it going to close and shut down operations at that point? For
a business to have longevity the current business owners have to focus on what they want
it to look like, and as you know, for a business to have both goodwill and market value
it has to be really clear on how it does its business. To create viable business opportunities,
people need to communicate.
People get into business to make money and this can come from a yearly income, profit sharing or
the eventual sale proceeds. People form partnerships in the hope of creating a successful business.
They recognise that no one person can possess all of the necessary skills to run a successful and
viable business, and it is in that very identification process that lies one of the biggest threats
to the business, if the planned or unplanned exit strategies of key people are not addressed.
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